Altcoin Volumes Plunge 50% as Bitcoin Dominance Surges to 36.8%
Altcoin trading volumes on Binance collapsed by roughly 50% between November and mid-February as Bitcoin reclaimed dominance. By February 13, altcoins represented just 33.6% of exchange volume, down from 59.2% three months earlier.
Altcoin trading volumes on Binance collapsed by roughly 50% between November and mid-February as capital rotated back to Bitcoin during the latest correction phase. By February 13, altcoins represented just 33.6% of exchange volume, down from 59.2% three months earlier.
Bitcoin's share of trading activity surged to 36.8% by February 7 as the market consolidated between ₱3,765,965 ($65,000) and ₱4,172 ($72),000. Ethereum claimed 27.8% of volume by mid-February, leaving altcoins squeezed into the smallest slice. CryptoQuant analysts noted the pattern mirrors previous corrective phases in April and August of last year, when capital fled speculative tokens for Bitcoin's relative stability.
The exodus reflects a familiar dynamic during market uncertainty. Deep corrections trigger capital migration toward Bitcoin while altcoins experience reduced inflows, according to CryptoQuant's analysis. The firm pointed to late 2022 as another period when the end of a bear cycle produced similar rotation patterns, with Bitcoin absorbing capital as investors sought liquidity over speculation.
Total crypto market capitalization excluding the top 10 assets has ranged between ₱9.85 trillion ($170 billion) and ₱10.43 trillion ($180 billion) during the recent period. That's a sharp comedown from 2021's bull cycle, when altcoins reached euphoric highs before facing persistent difficulties throughout 2024. ARK Invest CEO Cathie Wood attributed the broader market reset to Federal Reserve liquidity tightening through balance sheet reduction, directly impacting speculative appetite.
BitMEX co-founder Arthur Hayes warned of an approaching financial crisis contributing to market turbulence as stock selloffs spilled into crypto. The August selloff pattern, triggered by Bank of Japan interest rate hikes, erased altcoin gains in a preview of current dynamics where macroeconomic pressure amplifies weakness in smaller tokens. Bitcoin reclaimed the $60,000 level during the analyzed period, reinforcing its status as the market's fortress during uncertain conditions that intensified in November 2024.
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